Business

Salaries will increase by 2.07% in 2021

These are the main findings of the Mercer General Study on Total Compensation 2020 and the special edition of the study which, due to the health crisis caused by COVID, was developed this year. In this document, the remuneration practices and policies of more than 480 companies are analyzed, on the basis of a large and detailed volume of information on the remuneration of more than 3400 positions, according to their function and their responsibilities with from a large, diverse and heterogeneous sample of the market.

According to the companies participating in this study, the average wage increase for Spaniards in 2020 (2.09%) will be around a tenth lower than that recorded in 2019 (2.2%).

From the special edition carried out and due to the impact of the pandemic, we have observed how some indicators have been affected on the downside, with 11% of organizations considering making salary cuts in 2020 and 24% of them expect that they will benefit from a lower variable performance bonus than the one corresponding to 2019.

“Taking into account the current economic situation caused by the health crisis, we observe that the trend, although it continues with salary revisions, continues over time and the values ​​of increases by professional category will also be reduced. We estimate in this context, a scenario of salary moderation for the revision of the fixed amounts, as well as the maintenance of a variable remuneration with a high percentage of representation within the total remuneration and the increasing tendency to flexibility and diversification corporate benefits, ”says Juanvi Martnez, Career Manager at Mercer.

According to Mercer’s 2020 Global Total Compensation Study, long-term incentives have increased slightly, eligibility is 50.7% compared to 47% in 2019. The number of companies offering short-term incentives remains at 97%.

We also asked about aspects that are closely related to remuneration and which have a very significant impact, such as remote working and flexibility. 64% of organizations have implemented a remote work policy in response to Covid, or 48% of the total of those who provide grants / tools to their employees to work from home. When it comes to flexible working, 28% of organizations are developing policies in this area to handle the effects of the pandemic, and 23% of the total plan to keep policies in a post-covid scenario.

The Mercer study shows that in 2020, the percentage of companies offering flexible compensation plans remains. The services most in demand remain health insurance and food assistance, and childcare assistance and transport vouchers are consolidated.

Benefits

Profits increase slightly in 2020. 76% of companies that participated in the study offer life insurance to their employees. Health insurance has been maintained in recent years, 75% of organizations grant this insurance to their employees.

Eligibility for the automotive sector also remains at 83%. The company car continues to be primarily targeted at senior executives, middle managers and the sales force. Job needs and professional level remain the main award criteria in the allocation of company cars for the sales force and senior management categories, while leasing remains the formula for purchasing company cars. most common business.

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